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Masdar, EDF, and Nesma Form Joint Venture for 1,100 MW Saudi Solar Project

The European Commission approved a joint venture between Masdar, EDF, and Nesma to develop a 1,100 MW solar plant in Saudi Arabia. The project will focus on power generation, transmission, and distribution, enhancing renewable energy efforts.

October 21, 2024. By EI News Network

The European Commission has given its approval for the formation of a solar power joint venture between Masdar, a renewable energy company based in Abu Dhabi, EDF, a French utility giant, and Nesma, a diversified group from Saudi Arabia.

The joint venture aims to develop and manage a significant solar project in Saudi Arabia, with plans to engage in electric power generation, transmission, distribution, and sales, as confirmed by the Commission.

The joint venture will spearhead the development of the Al Henakiyah solar plant, which has a capacity of 1,100 MW, This project comes as a result of a competitive tender process held in November 2023, in which the consortium of Masdar, EDF Renewables, and Nesma Renewable Energy submitted the lowest bid, securing the contract to build the solar facility.

The European Commission's antitrust regulator concluded that this deal would not significantly impact competition within the European Economic Area (EEA). Given that the joint venture's primary operations will take place outside of Europe, in Saudi Arabia, its influence on the European market was deemed minimal. As a result, the transaction was reviewed and approved under the simplified merger control procedure, a streamlined process used when mergers are unlikely to raise competition concerns.

This project aligns with Saudi Arabia’s broader efforts to diversify its energy sources and increase its renewable energy capacity, in line with the country's Vision 2030 initiative, which aims to reduce dependence on oil and foster sustainable development across various sectors.

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Al Henakiyah solar plant

Sustainability in Saudi Arabia

Solar projects in middle east

Solar projects in Saudi Arabia